Downsizing In A Shifting Market: Is It A Good Idea?

After two solid years of soaring housing prices and record-low inventory levels, we finally see signs that the real estate market is starting to cool off. Words like “buyer’s regret” are finding their way into the headlines. Every day, you hear about rising interest rates and inflation, and it can feel scary at times. First-time buyers will struggle unless they’re fortunate enough to earn a much higher than average income.

On the other hand, current homeowners need not worry. In fact, if you’re planning a move, the market may have just shifted in your favour. How? Let’s take a closer look at what is happening.

What Caused The Market To Shift?

When the pandemic hit and the province began shutting down in March of 2020, many condo owners looked for larger homes with more space for entertaining. The condo market dipped slightly, but the demand for detached houses was never higher. In addition, the Bank of Canada dropped the interest rate to historical lows, which only added fuel to the already hot market.

Is it the right time for you to think about buying a new home? Here are some other resources to guide you:

• Our Advice On Buying A Home In Etobicoke
• Buying The Right House: Our Top Six Tips
• The Pros Of Using A Buyer’s Agent

Near the end of 2021, the Bank of Canada announced a series of interest rate increases, and buyers became even more frantic to purchase while the cost of borrowing remained low. We saw the first increase in early March, which barely made a dent in the market.

However, with the two rate hikes in April and another significant one earlier in June, the market has finally started to cool. Add record inflation to the mix, and many first-time buyers have stepped aside to wait things out.

Good News For Downsizers?

Near the end of March 2022, the average price of a house in Toronto reached $1,300,082, according to the Toronto Regional Real Estate Board (TRREB). By the end of April, prices had slipped to $1,254,436. The news of falling prices may sound disastrous for current homeowners.

However, the key takeaway from the shifting market is not that prices are decreasing – it’s that more houses are available. As first-time buyers leave the market, there are more options for those still searching.

If you’re a homeowner thinking about downsizing, you’re in a far better position than you were a few months ago. The extreme shortage of available housing made many people reluctant to sell, even if they were ready for a change.

Buyers now have more options even as prices decrease, but the market remains strong for sellers.

And it’s true that you would have earned more if you sold during the peak times. However, you would have also paid much more for a new home – if you could find one. 

If you want to sell now, try not to focus on what you would have earned earlier. Instead, focus on the fact that you will pay less when it’s time to purchase your new forever home.

Ready To Downsize? The Time To Prepare Is Now

If you want to take advantage of the shifting market, the first step is to get your current home ready to sell. The prospect may feel overwhelming, but it’s essential if you want to receive the most value from your sale. Maximizing your sale now will help you afford your new place more comfortably. 

You can make this process easier by starting early and doing a little at a time each day. In addition, many Realtors® offer complete services and will take care of every detail for you from start to finish. 

Tips For Maximizing Your Sale

Even if you do nothing else, start by decluttering. A clean house automatically adds to the perceived value of your listing. It’s well worth the time and effort to be thorough.

We recommend sorting everything into three boxes:

1. A “Yes” pile of your belongings that you know you want to keep.
2. A “No” pile for items that can be discarded or donated.
3. A “Maybe” box for your belongings that you’re not sure if you should keep or not. 

Try to be as ruthless as you can during this decluttering stage. Just think – the more you get rid of now, the less you’ll have to move and sort through later.

Feeling Overwhelmed? Let Us Handle It For You

If you’ve never had to completely declutter your house before, it can feel very daunting. At Thompson Sells, we prepare homes for sale on a regular basis, and we can complete the task in as little as two to three days. 

Best of all, every client receives complimentary decluttering services and consulting to determine what minor repairs are worth it.

Here are a couple of comments from previous clients we have worked with:

I was faced with the daunting task of selling my aunt and uncle’s house following the unexpected death of my uncle. Jody Thompson lived nearby and knew my aunt and uncle. He came to share his condolences and ask if I needed any help. His timing could not have been better. Jody was a true professional. When I saw that one of the services they can provide is assistance packing the house, I decided that this was the Realtor for me. The Thompson Sells team helped pack up and clean the house. The video and photos were fabulous, and every aspect of the service exceeded my expectations. Jody and his team are efficient, hard-working, respectful, helpful and very easy to work with. Even after the house was sold, they helped me deliver furniture to the Furniture Bank. I highly recommend Jody Thomson and his team at Thomson Sells! – Sylvia K

We couldn’t be happier with the care and service we received from Thompson Sells. They decluttered, cleaned, and staged my home beautifully, a complimentary service I’m sure many Realtors charge for, and my home sold very quickly. They worked hard to get us a great price, and again to negotiate a great deal when we bought our new home. Thompson Sells went over and above our expectations. – Wanda Matijczak

A successful sale starts with knowing how much your home is worth. Get your free home evaluation here.

Minor Repairs And Updates

It may sound counterintuitive, but less is more when renovating your home before a sale. You never know what might appeal to a buyer. The last thing you want to do is spend thousands of dollars on an upgrade that actually lowers the value of your house. Once again, an experienced real estate professional can guide you on what works in your area. 

Keep in mind that small details can add significant value without breaking the bank. You can’t go wrong with minor updates like these:

• A fresh coat of paint
• New silicone around the sinks and bathtubs
• Changing the lightbulbs
• Adding new knobs and handles on drawers and cabinets
• Replace outlet covers, curtain rods and doorknobs
• Maintain your lawn and outside curb appeal

Want to sell your home fast at the highest possible price? Download our Seller’s Guide right here.

Finding Your New Home

Now we come to the most exciting part of the process: Finding your new home! Your Realtor® will help you decide whether to sell your current home first or buy first. However, it’s never too early to start thinking about your new house. Think of the features you want to enjoy. 

For instance, do you want a small bungalow with a backyard? Or have you had enough yard work and maintenance for one lifetime? In that case, you may look for a condo or townhouse where everything is done for you.

A clear picture of what you want your new house to look like is the first step to downsizing.

Do you want even more details to help you downsize your home? You can read our complete guide right here.